The cross table is created to help you overview large chunks of data, once you have created a custom categorization you can combine it with your ABC categorization
In order to use your delivery time analysis, identify
- Important AA-products with long delivery time (potential stock outs if you misread your customers)
- Extremely short delivery time on risky AC-products (lower your minimum stock to increase working capital)
Set up the crosstable
The window is empty first time you enter.
- Choose the vertical axes (Delivery time analysis) and the horisontal (Master ABC categorization)
- Click ‘Apply’
Reading the crosstable
The crosstable offers a "detailed overview" adding an extra dimension to your ABC categorization. Observe your AA products (enlarged image below):
- The upper blue line shows the total: You have 520 AA-products
- 90 of them have a delivery time + 1 month
- Click "90" to view the 90 products in a click report
- From the click report, quickly gain an overview of your items and the service level per product.
Classic three-legged set ups
We recommend using the three-legged as an extra layer for your master ABC categorization.
- Profitability Create a new single ABC categorization based on contribution margin and identify AA-products with a high profitability margin (and tell sales)
- Production time How fast can you produce your products (use single ABC or copy the example above with delivery time)
- Service level Highlight poor performance / service on important products using the crosstable.
Setting up the analysis. In your research phase you might not be sure how to define the exact criteria for each custom category. (should you make the cut at "1 month" or after "2 months"?) Instead, begin by adding a single ABC categorization on the parameter you are interested in (eg. delivery time) and use the default 80 / 15 / 5 setup. Add this to the cross table along with your master ABC.
Zero is not always zero - Beware of ERP flaws
Very often, a "0" in your data set represents an error in your ERP system. Therefore, when you start working with your data always be critical! Do you really have that many products with delivery time "0"?